Business Type
Soletrader
DEFINITION-The only owner of a business who are their own boss, It is the simplest form of business and the owner is responsible of all the decision making.
Responsibilities Include: Bills, Rent & Rate, Stock, Pricing Up, ensuring tax is in on time.
Advantages: Disadvantages:
-Be your own boss -Unlimited liability
-You can do what you want - Personal responsibility for their business
-You can keep all of your profits. -If in debt, it will slip into their personal life (having to sell their TV)
Examples in Blackpool: Adam’s Kebabs, Hairdressers, Nottriani’s Ice Cream
Partnership
DEFINITION-A business that is owned by more than one person (consists of up to 20 people)
DEED OF PARTNERSHIP- Outline how the business should run and how the profit between partners, and decide who has what role in the business
Advantages: Disadvantages
- Increased start up cost -May take longer to make decisions
- Banks will invest more - Shared profits
-Shared responsibility -Disagreements
-Flexibility -Not a fair effort
Examples in Blackpool: Taylor's Bakery,Food @156
Sleeping Partner: A sleeping partner is someone who invests in the business but does not have dealing in the day running of the enterprise
Private Limited Company (LTD)
DEFINITION- A small to medium business which is commonly started by families with minimum of two people
Advantages: Disadvantages:
-Limited Liability - The finance is more complicated
- Huge amount of capitol - Everyone can see the business's accounts
- Bcomes its own body - Not allowed to list on the stock exchange
Examples in Blackpool: Syscom Business computing Ltd, Gilberts Ltd
Public limited Company (PLC)
DEFINITION- Owned by shareholders which floats on the stock exchange so anyone can buy them. Owners do not work in the business and the minimum of £50,000 authorised in the share capitol.
Advantages: Disadvantages:
- Can expand quickly - Formation and running cost can be expensive
- Different lines of cash - Employees and shareholders are distant from one
- Increasing investment another
- Everyone knows what they are doing as everything is announced
Examples: Tesco PLC, Facebook PLC
Franchise
Define - An ownership structure that allows investors to buy the rights to use the name of a company
Example - An investor can by the rights to use the name of Subway and trade under their name.
Advantages Disadvantages
- operating under a well established name - Lack of flexibility - can't change your product
- More likely to get financial backing - The term of your contract can be short and not reviewed
DEFINITION-The only owner of a business who are their own boss, It is the simplest form of business and the owner is responsible of all the decision making.
Responsibilities Include: Bills, Rent & Rate, Stock, Pricing Up, ensuring tax is in on time.
Advantages: Disadvantages:
-Be your own boss -Unlimited liability
-You can do what you want - Personal responsibility for their business
-You can keep all of your profits. -If in debt, it will slip into their personal life (having to sell their TV)
Examples in Blackpool: Adam’s Kebabs, Hairdressers, Nottriani’s Ice Cream
Partnership
DEFINITION-A business that is owned by more than one person (consists of up to 20 people)
DEED OF PARTNERSHIP- Outline how the business should run and how the profit between partners, and decide who has what role in the business
Advantages: Disadvantages
- Increased start up cost -May take longer to make decisions
- Banks will invest more - Shared profits
-Shared responsibility -Disagreements
-Flexibility -Not a fair effort
Examples in Blackpool: Taylor's Bakery,Food @156
Sleeping Partner: A sleeping partner is someone who invests in the business but does not have dealing in the day running of the enterprise
Private Limited Company (LTD)
DEFINITION- A small to medium business which is commonly started by families with minimum of two people
Advantages: Disadvantages:
-Limited Liability - The finance is more complicated
- Huge amount of capitol - Everyone can see the business's accounts
- Bcomes its own body - Not allowed to list on the stock exchange
Examples in Blackpool: Syscom Business computing Ltd, Gilberts Ltd
Public limited Company (PLC)
DEFINITION- Owned by shareholders which floats on the stock exchange so anyone can buy them. Owners do not work in the business and the minimum of £50,000 authorised in the share capitol.
Advantages: Disadvantages:
- Can expand quickly - Formation and running cost can be expensive
- Different lines of cash - Employees and shareholders are distant from one
- Increasing investment another
- Everyone knows what they are doing as everything is announced
Examples: Tesco PLC, Facebook PLC
Franchise
Define - An ownership structure that allows investors to buy the rights to use the name of a company
Example - An investor can by the rights to use the name of Subway and trade under their name.
Advantages Disadvantages
- operating under a well established name - Lack of flexibility - can't change your product
- More likely to get financial backing - The term of your contract can be short and not reviewed